Archive for the ‘Luxury’ Category
Why Are Luxury Homes So Difficult to Sell?
Let’s look at what goes on in the mind of a luxury home owner who wants/needs to sell their property. This may actually apply to a home in any price range but as you recall, we are going to focus on the luxury home market in particular today.
Typically, a savvy luxury home owner will go back to the real estate agent who helped purchase the home. Another common practice is to do a Google search of nearby realty firms and decide on the best realtor to sell their home using various criteria. Some reasons a person may choose a realtor is because that person has the most sold listings or they received a flyer in the mail or because they liked the realtor’s smile. Another way to choose a realtor is using personal connections, such as a relative, a classmate or a friend.
For whatever reason, when choosing ABC Company and XYZ real estate agent, the process is usually the same.
- Decide on a Real Estate Agent or Realty Company
- Sign a contract with the Real Estate Company to represent you
- The Agent suggests a price based on comparable homes in the area
- A listing price is negotiated and decided upon
- The Agent lists the property on the MLS
So what is “the MLS”?
MLS stands for Multiple Listing Service. Basically, it is the main listing source that pools all member real estate companies’ available inventory or list of luxury homes that are registered with them so that everyone can see what is available on the market at any given time.
What are the advantages of having an MLS listing?
- Ease in finding the majority of luxury homes that are for sale right now
- Comparing luxury homes presently on the market without difficulty
- Listings are contracted for a specified amount of time
- Accessible only through a certified member of the Board of Realtors
who has a fiduciary duty to represent you and protect your interests
Real Estate Companies Specialize in Selling Homes at Market Value.
With the centralized pool of listings on the MLS, real estate companies are able to establish and check on the value of a piece of real estate in any given area. Determining value is crucial to selling a property. Without a tool to measure its value, it becomes difficult to know the true worth of a luxury home.
Another thing to remember when determining the value of a luxury home is of course, the condition of the luxury home. A newly constructed luxury home is more desirable than a remodeled luxury home, which in turn is more saleable than a fixer upper. Keeping your luxury home well-maintained enables you to ask top dollar for the home.
There is only one catch to the retail market of luxury homes and that is you can list your luxury home for whatever price you want to but it is only worth what someone is willing to pay for it, in other words, market value.
The real estate professional uses many tools to sell your luxury home. Some are:
- informs his clients and fellow realtors of your listing to see if there may be a potential buyer
- puts a For Sale sign out in front of the property
- lists it on the MLS
- advertises it in newspapers or in magazines
- holds open house events
- more sophisticated companies have marketing campaigns in place to give more exposure to their listings that the seller more often than not will have to pay upfront.
Real estate professionals more often than not, cater to owner-occupant buyers.
Once a realtor is decided on, an agreement is reached on length of listing and the luxury home is appraised, the luxury house is put on the market and the roller coaster ride of when-will-my-house-sell begins.
The 3 types of Buyers
From a business perspective, the luxury home is considered a commodity for which there are buyers. Identifying your end buyer will dramatically increase your chances of selling and/or selling quickly.
- Owner occupant’s 1st,2nd, 3rd + home
- Buy-and-hold investor’s rental unit
o entry level investor
o modest investor
o sophisticated investor
- Niche investors
o Short sales
o Foreclosures
o Rehabbing
o Wholesaling
Determining which end buyer you want to target will determine the price and how quickly you may be able to sell the home. As with anything else, there are those who are better than others in getting the job done.
The median home market has many more investors to turn to than the luxury home residential market. These investors may have ads or signs stating, “We buy homes.” “We take over payments.”
Real estate investors are, as a whole, people trying to help others out of a difficult situation and trying to make a profit in the process. These types of businesses are NOT non-profit companies so they expect to make some monetary gain from the transaction. After all, investors are not a charity operation and are not going to make your problem luxury home their problem luxury home. They make investments of their money and time to do transactions that they specialize in and expect to make a profit for their talents.
Investors are specialists in their field just as real estate agents, doctors or lawyers are specialists in their respective fields. They help people out of circumstances that could potentially become worse.
What about the Luxury Homes owners?
Waiting for an owner occupant is a great choice if you can afford to wait for the right buyer to come along for your luxury home. Listing it with a Real Estate professional is the most effective way in selling a luxury home “retail”. In the luxury home market, the average time it takes for the “right” buyer to come along is from 1 to 5 years. The more the luxury home costs, typically, the longer the wait. The 1-3 Million price point of luxury homes has heavy competition and there are better options when comparing what is available entirely and not just in a particular neighborhood.
Since investors who typically do business at the 2M-200M price points or at retail prices are few and far between, what problems would a typical luxury home owner-seller face?
- $12k or $50k monthly house payment are typical for a luxury home. Who can you turn to? How do you solve your financial situation? A part time job at Wal-Mart will not cover this kind of expense.
- Sometimes, when upgrading to a new home, you may have found the perfect house to move into but you may still be stuck with the home that you grew out of. You still have to keep up payments on that luxury house because 1031 exchanges aren’t always as smooth as they could be. In addition, remember you have a limited amount of time to do that exchange in.
- What if your key to financial stability is through the sale of your multi-million dollar home? Who do you turn to for guidance and confidentiality?
- Do you need to relocate because of business or personal reasons and must sell your property quickly?
- Divorce or health problems place an urgency to liquidate assests
So what is a luxury home owner to do in the event that holding costs are too high and keeping the property means essentially losing money with each day that goes by?
Luxury home investors
There are companies that specializes in the acquisition of luxury homes and commercial properties all over the world? A company that closes the transaction quickly and uses CASH in all transactions? No waiting for approvals from the bank, which may not even come through especially in today’s lending environment.
How can you meet investors who specialize in luxury homes and who purchase luxury homes at a fair price? Investors who have an established list of prequalified clients wanting to buy luxury homes at a fair price can re-sell those acquired luxury homes. That is a scenario which would work for all parties involved.
These investors are not in the business of stealing luxury homes. They solve problems and make their money on the sheer volume of luxury homes that are bought and sold. It is the investor that has his or her own buyers’ list that will get business done quickly and efficiently.
Business much easier and quicker
Investors typically have a database of buyers that do business with them exclusively due to the relationships that have been built and the value that is gained by buying through them exclusively. The clients entrust investors in this industry who do business honestly, ethically, with integrity and also guarantee good value. They have access to an unlimited amount of cash to complete transactions. Usually what ends up happening is the need to buy more houses to keep up with the demand.
As with any business, the cost of doing business prevents a wholesaler from buying at retail value of the luxury home. If a miscalculated purchase occurs the outcome is not being able to make any profit or worse yet paying money which would put one out of business rather quickly, and be the laughing stock of the industry. Here are some examples of the overhead and costs involved in running a real estate investment business:
- Cost of cash (8-18%)
- Closing costs on the buy and the sell
- Marketing costs
- Insurance
- Prepping a home
- Travel costs
- Inspectors
- Other miscellaneous costs
If an agreement of price is reached………
That is what you will get. Cash in your hands for your luxury home, the exact amount that is agreed upon in order to acquire your home at closing. Closing on the date of your choice is a relief to know and to use the title company of your choice. Wholesalers take the anxiety out of selling your home. This is an all around WIN-WIN-WIN situation and this is the only business we do. It is that simple.
If you want to sell your luxury home, wholesalers want to buy your luxury home…………….. NOW
Vietnam’s First Luxury Tour Company Awarded for Excellent Product and Service Awards 2008
The Vietnam’s first luxury tour company LUXURY TRAVEL will be presented with a Excellent Product and Service Awards 2008 from the Vietnam Small and Medium Enterprise Association on Sunday 4 Jan 2009 in Hanoi.
According to Deputy Prime Minister of Vietnam Mr. Hoang Trung Hai, the criterias for this prestigious award certificate the quality of the products and services of the player in the market.
This is the annual award of the Vietnam Small and Medium Enterprise Association with the purpose of honoring the most outstanding faces in thousands of companies in Vietnam.
This year, the organization committee will award 100 enterprises national wide in all sectors, the economy components, including the enterprises with 100% foreign capital operating effectively in Viet Nam. Luxury Travel will be awarded for the most Excellent Product and Service Awards in Vietnam in 2008 in the tourism industry.
The “Excellent Product and Service Awards 2008” award ceremony will be organized solemnly at Hanoi Opera House on 04 Jan 2009 and live broadcast on the Viet Nam National Televisions VTV1 and VTC1.
The organization committee expects the presence of many high ranking officials of States, Party and Government at the event live on TV, among others, Mr. Nguyen Minh Triet – President of Socialist Republic of Vietnam, Mr. Le Kha Phieu former General Secretary of the Communist Central Committee of Vietnam, Mrs. Nguyen Thi Doan, Vice President, Deputy Prime Minister Hoang Trung Hai, Mr. Nguyen Ðuc Kien, Vice President of the National Assembly.
“We are very proud of this Excellent Product and Service Award 2008 as it is acknowledgement of our continued efforts to create the niche tourism products for high-end tourists and deliver the right experiences with best available services. We are a small company but we still believe small is beautiful” Mr. Pham Ha, Founder and CEO of Luxury Travel Vietnam said:
“We recently returned from our wonderful 15 day journey to Vietnam and Cambodia arranged by Luxury Travel” attested Pamela Solvang, a journalist from Shark Tivi, Texas, USA. “We can’t thank Luxury Travel enough for providing such an excellent travel experience for us from start to finish. The three of us on this trip have all traveled extensively, all around the world. We have used the best luxury travel companies in the US and elsewhere and can says that Luxury Travel Vietnam have moved to top notches of all”
Notes to Editors
Luxury Travel Co., Ltd. (Vietnam) is a 100% fully registered and privately-owned Vietnamese company. It was founded by luxury travel specialists since the 1990s when Vietnam had just opened its doors to worldwide tourism.
The Luxury Travel Company is Vietnam’s first luxury tour company and full travel service agency. Luxury Travel is experienced in providing special services and unique tourism products to luxury global travelers. The company’s depth of experience and large infrastructure enable it to create unique itineraries with the operational confidence to fulfill client expectations.
Luxury Travel Company’s main business activities – luxury inbound/outbound operator, luxury adventures, custom tours, romance, wellness and spa, MICE, family travel and private travel arrangements for VIP stars, celebrities, Royal and Government clientele, private jet and yacht cruises…nothing is impossible in the whole luxury meaning.
Last year, the company served 10,000 satisfied customers. Among Luxury Travel’s clients are ambassadors, senators, Russian millionaires, CEOs and presidents of Oman Oil Company, royalty and Oman Royal Government ministers, French ministers, Deputy Prime Minister of Canada…and others.
Luxury Travel operates two brands – Luxury Travel and Premium Travel, both for high-end travelers who are inbound and outbound. They are both registered by the National Office of Intellectual Property of Vietnam.
Luxury Travel is a member of Pacific Asia Travel Association (PATA), American Association of Travel Agents (ASTA), Vietnam National Administration of Tourism (VNAT), Vietnam E-Commerce Association (VECOM), Vietnam Tourist Association (VITA).
Luxury Travel has several locations throughout Vietnam. The Head Office is located in Hanoi. Branch offices are located in Ho Chi Minh City (formerly Saigon), Danang, Sapa and Nha Trang. All company operations are run by experienced, creative managers and guides. The Luxury Travel Team includes more than 50 people located throughout Vietnam, Laos and Cambodia.
Luxury Travel has won numerous other awards in Vietnam including the most recent award: Vietnam’s Top Trade Service Awards 2007, Integration and Development Businesses Awards 2008, Cultural Entrepreneur Awards 2008, Excellent Performance – The Guide Awards 2007-2008, Vietnam’s Excellent Product and Service Awards 2008 and Most Nominated So Far for Vietnam’s Best Service Awards 2008.
Luxury Hotels Las Vegas are the Reason for the Increase in Toursim Dollars in Nevada
The state of Nevada has done several things in the last ten years to increase tourist visitations including the expansion of legalized gambling, the construction of high end stores and entertainment facilities, and an increase in flights to a from airports in the state; however, with the construction of dozens of luxury hotels, Las Vegas has become the central focal point of Nevada’s push towards an increase in tourist money entering the local economy. They do this by offering unique experiences, high end amenities, and luxurious and spacious suites.
By building these hotels the city has not only dramatically increased the available rooms for potential tourists, they have increased the overall experience that these tourists have. These hotels offer more amenities, larger casinos, luxurious suites, and expansive creativity with structure and design. All these elements work together to not only bring more tourists to the city, but to increase the overall financial quality of those tourists. Therefore, not only are more tourists visiting the area, but they are wealthier than typical tourists and spend more money, thus further driving the local economy.
The luxury hotels of Las Vegas have become world famous. Architects, owners, and investors have done everything possible to make every hotel a unique experience from the first step into the lobby. Establishments offer spectacular light and laser shows, phenomenal water fountain displays, and dramatic and impressive architecture. Various hotels boast of incredible recreations of the New York City skyline, the gardens of Babylon, the Great Pyramids of Giza, and spectacular light and water shows that operate on any hourly basis. All of these attractions draw millions of visitors a year that simply want to view these amazing structures. For the average visitor this experience is like visiting five cities in one trip.
With all the luxury hotels, Las Vegas has become a high end amenities mecca. Most of the newly constructed facilities offer so many amenities that they are considered to be all inclusive resorts. These amenities include five and four star restaurants (more than half a dozen hotels in Las Vegas can boast of two five star restaurants), shops that cater to wealthy clients (clothing stores, jewelry shops, and electronic retailers), and expensive salons, masseuses, and spas. All of these stores and facilities exist because there is a clientele available who is willing to spend the money associated with such services and products. All of this means an increase to the local economy.
All the stores, restaurants, and entertainment in the world will mean nothing if you cannot offer a luxurious place to lay your head. Therefore, all of the new hotels offer incredible accommodations. These accommodations include huge rooms. Some suites rival the size of houses with square footage ranging into the forty-five hundred ranges. Many are two stories with professional kitchens, spacious bathrooms, and expensive imported features. While wealthy tourists spend their money on the strip, in casinos, and at restaurants, they come to Las Vegas because of the high end suites in which they will be sleeping. These rooms are top notch and attract millionaires from all over the world.
Due to these luxury qualities, Las Vegas has not only increased the amount of people that visit the city, but also the financial quality of those visitors, thereby increasing the local economy of the region.
